Interesting article about Oil

wanghong

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7 b" a0 Q% O3 Y! [3 O6 Q" SBelow is an Interesting article I found, which says that.....Do not
5 R- y* `: |# U1 m& D) Yexpect much from Crude Oil producers and future is not with the
5 [  }' i+ N- z; \companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
  T+ Z  a" X7 T6 w' G! Scrude prices improves. This implies also to good names such as Shell,
% [3 ?  ^7 ]4 }$ ^5 CEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
2 |9 p! |0 F4 z, nmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
0 i; C* ~; `0 x6 ~7 z2 H- k, dA year ago these things would have spiked the price of crude oil by at
% Q) M' h# N0 T/ v2 d# T; A" `6 R! Rleast $50.00 per barrel. Today, oil price declined by a record amount.
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* J9 x* F1 w# w0 J" o+ SThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
% J9 g& D  g- H3 H  \in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
- R: O9 e* ?7 D8 l  h5 G& EThis is the largest find in North America.


5 h# l( n" q: c6 p5 E( n3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
) ~& m# E: ^+ `6 `0 T& ~) jfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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& F" r8 ^6 d* x( d0 U6. There are 99 nuclear reactors in various stages of planning and
/ e0 i0 m9 J1 Mconstruction around the world at this time. Several hundred more are
' R9 Y" @# i4 `expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
  ?# A9 e( P- M$ t1 {. h$ Lare experiencing 20% to 25% better fuel econony with the new
4 L- g1 V! L+ L3 E1 }' iequipment.
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, }, u' `& i. Z* G- a2 o2 [% ?Airlines are flying airplanes with bio-fuel. They are finding the bio-
& y( x4 C9 ?: @) k, ]% ]8 tfuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
; i: t/ K  m" i, A0 Zoil.


/ k2 g2 L; _( Y& \# `. p9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
, s5 \& o  ^  w1 r/ C- j3 Yoil wells.
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7 Z: D! o2 @* ]. {6 E7 v10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
. \5 X& X  i  l+ Y) H7 M& }4 Lchanging. The important thing is that OPEC no longer has the ability
9 b# j  T* A# xto control oil prices.
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. L5 r* [6 ]  ?2 ZWith the above scenario, I still believe that there are under
$ w, s3 t- F! m; d" Bperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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3 x1 ^7 ]( j0 i; ]The above articles are from WSJ .............PUBLISHED ON 9TH JAN
: z, ~( f* ]$ e2 G( c# z4 {2009 ... FYI-Only